SIPTU welcomes pay increase for construction workers

SIPTU members in the construction industry have welcomed a pay increase and other improvements granted under a new Sector Employment Order which was introduced by the Government on 14 May.

The Ministerial Order for the SEO becomes effective on 1st October 2019, meaning a bricklayer, for example, should earn €19.44 per hour.

Construction (InsideIreland.ie)

What are SEOs?

Sectoral Employment Orders (SEO) are a wage setting mechanism provided for in the Industrial Relations (Amendment) Act 2015. They replace the Registered Employment Agreement system which was found to be unconstitutional in 2013.

Sectoral Employment Orders are legally binding on the Sectors to which they apply and their provisions are enforceable by the Workplace Relations Commission.

On May 10, the Minister for Trade, Employment and Business, Pat Breen formally approved two recommendations from the Labour Court for the new minimum pay rates.

The Minister said:

“These measures are an important step in securing stability and growth in crucial sectors in our economy. These Orders will protect the working conditions of workers in the construction and electrical contracting sector; will underpin continued good relations between workers and employers in the sectors; and will help maintain the attractiveness of these sectors as career options.”

Trade Unions applications

In the case of the construction sector the Labour Court recommendation follows on from an application by the BATU, Connect, OPATSI, SIPTU and UNITE to the Court to review the terms and conditions of workers in the Construction Sector. The application in the electrical contracting sector was made by Connect and the Association of Electrical Contractors Ireland and the Electrical Contractors Association.

According to SIPTU Transport, Energy, Aviation and Construction Division Organiser, Greg Ennis, the new SEO grants improvements in pay of 5.4% over two to the union’s 14,000 construction operative members as well as confirming the 39 hour working week and overtime terms.

However, the union said it is ‘somewhat disappointing’ that the new entrant rate will now run for two as opposed to one year and that there was ‘no progress made on the travel time issue’.

“However, there are positive and significant changes to pension and sick pay which are now included in this latest review of the SEO”.

As part of the ICTU Construction Industry Committee Mr Ennis said SIPTU will review the detail of the announcements later this week and will consult with the Congress Construction Sector Committee before making any further comment on the SEO.

Construction Pay Increase

According to the Department of Business Enterprise and Innovation, the following basic hourly rates of pay will apply in the sector from 1st October 2019 to 30th September 2020:

Moreover, April marked the sixty-eighth consecutive month of greater construction activity in Ireland.

Commenting on the survey, Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, noted that Irish construction firms have made a ‘strong start to the second quarter of the year’, according to the April results.

“Furthermore, Housing activity was again (and for the fourth month in a row) the strongest performing sub-sector as growth in residential activity continues to show welcome signs of rapid expansion, at similar rates to those reported in 2018.”

-Simon Barry, Chief Economist Republic of Ireland at Ulster Bank

Brexit factor

In relation to the UK leaving the EU, which was supposed to happen on 29 March 2019, with the possibility of a No Deal Brexit looming, Mr Barry said, negative Brexit uncertainty effects on customers were identified by some firms who noted lower demand in the April survey.

“Moreover, Brexit was also cited as a factor behind the sharpest rise in purchasing activity since last June, as some firms stated that they had brought forward input purchases in order to mitigate any potential supply issues resulting from Brexit.”

“Nevertheless, the April PMIs indicate that construction remains the fastest-growing major sector of the economy, with growth continuing to outpace that reported in both manufacturing and services where international risks and headwinds, including those linked to Brexit, represent more of a challenge.”

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